NMI Holdings Inc. NMIH shares are trading at a discount compared with the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.08X is lower than the industry average of 1.37X, the Finance sector’s 4.28X, and the Zacks S&P 500 composite’s 8.08X. The stock has a Value Score of A. This style score helps find the most attractive value stocks.
The insurer has a market capitalization of $2.85 billion. The average volume of shares traded in the last three months was 0.4 million. The insurer has a solid track record of beating earnings estimates in three of the past four quarters and matching in one, with an average of 3.16%.
Image Source: Zacks Investment Research
Shares of Axis Capital Holdings Limited AXS, First American Financial Corporation FAF, and RenaissanceRe Holdings Ltd. RNR are also trading at a discount to the industry average.
NMIH is an Outperformer
Shares of NMIH have lost 1.8% in the past year compared with the industry’s decline of 6.7%.
Image Source: Zacks Investment Research
NMIH’s Encouraging Growth Projection
The Zacks Consensus Estimate for NMI Holdings’ 2026 earnings per share indicates a year-over-year increase of 4.6%. The consensus estimate for revenues is pegged at $743.38 million, implying a year-over-year improvement of 5.2%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.2% and 2.8%, respectively, from the corresponding 2026 estimates.
Average Target Price for NMIH Suggests Upside
Based on short-term price targets offered by six analysts, the Zacks average price target is $46.17 per share. The average suggests a potential 22.9% upside from the last closing price.
Image Source: Zacks Investment Research
NMI Holdings’ Favorable Return on Capital
Return on equity (ROE) for the trailing 12 months was 15.1%, which compared favorably with the industry’s 7.4%. This reflects its efficiency in utilizing shareholders’ funds.
Key Points to Note for NMIH
NMIH stands to gain from new business opportunities in a growing mortgage insurance market. NMI Holdings’ mortgage insurance portfolio is expected to create a strong foundation for future earnings.
Growth in monthly and single premium policy production is tied to the increased penetration of existing customer accounts. New customer account activation will also drive results.
In order to enhance its return profile, absorb losses, provide efficient growth capital and mitigate the impact of credit volatility, NMI Holdings has a comprehensive reinsurance program for its in-force portfolio.
NMI Holdings boasts a strong capital position. As of March 31, 2026, total PMIERs available assets were $3.6 billion, and net risk-based required assets totaled $2.2 billion at the end of first-quarter 2026. NMI Holdings aims to generate solid mid-teens returns for its shareholders. NMIH also has access to $250 million of undrawn revolving credit capacity under the 2024 Revolving Credit Facility.
In February 2025, the board authorized a new $250 million share repurchase program effective through Dec. 31, 2027. As of March 31, 2026, NMIH had $198.2 million of repurchase authority remaining.
All these together should help the insurer continue to generate solid mid-teens shareholders’ returns.
End Notes
NMI Holdings is well-positioned for growth on new primary insurance written, direct primary insurance in force and a comprehensive reinsurance program.
NMIH should also benefit from a higher return on capital, favorable growth estimates and the affordability of shares. The stock also has a VGM Score of B. The VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report
Axis Capital Holdings Limited (AXS): Free Stock Analysis Report
First American Financial Corporation (FAF): Free Stock Analysis Report
NMI Holdings Inc (NMIH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).